# Question

What is the approximate yield to maturity (use formula 10-3) and the exact yield to maturity (use a calculator) for the following bonds? Assume these are bonds issued in the U.S.

For each of these problems, since we were not told otherwise, we will assume a par value of $1,000 and semi-annual coupon payments.

a. 10 years to maturity, 6% coupon rate, current price is $950.

b. 16 years to maturity, 0% coupon rate, current price is $339.

c. 25 years to maturity, 8.5% coupon rate, current price is $1030.

For each of these problems, since we were not told otherwise, we will assume a par value of $1,000 and semi-annual coupon payments.

a. 10 years to maturity, 6% coupon rate, current price is $950.

b. 16 years to maturity, 0% coupon rate, current price is $339.

c. 25 years to maturity, 8.5% coupon rate, current price is $1030.

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